FOMC Meeting - January 28-29

The next Federal Open Market Committee (FOMC) meeting is scheduled for January 28-29, 2025. This two-day meeting will be the first of eight regularly scheduled FOMC meetings for the year 2025. This meeting and its outcome will likely set the tone for the Federal Reserve's monetary policy in the early part of 2025. The Federal Reserve is widely expected to hold its key interest rate steady at this meeting, maintaining the fed funds rate range of 4.25% to 4.50%. Financial markets are pricing in near certainty that the Fed will keep rates unchanged as officials wait for more data indicating that inflation is cooling. Market expectations for this meeting have shifted, with the probability of a rate cut in January diminishing significantly. Financial markets have adjusted their positions in response to the Fed's cautious stance.

The Fed is currently in a holding pattern in its battle against inflation. After three rate cuts since September 2024, the central bank is now waiting for inflation…